Companies House Identity Verification Starts

As part of the Economic Crime and Corporate Transparency Act 2023, Companies House has finally started the process of identity verification for company directors and ‘Persons with Significant Control’ (PSCs) of Limited Companies. Initially, we are in a voluntary period for identity verification that will subsequently become compulsory.

Over the years, it has simply been too easy for anybody around the World to set up a Limited Company in the UK.  You can simply head to the Companies House website or via an automated company formations website and establish a company.  This has clearly led to some fraud, opening of suspect company bank accounts and more.  Finally, there is to be some due diligence in that majority shareholders, directors, officers, and PSCs of limited companies will need to prove their identity.

See Verifying your identity for Companies House - GOV.UK

Voluntary Verification

If you are a majority shareholder, director, officer, or PSC, you can voluntarily verify you ID either:

• Direct with Companies House via paper, certified documents etc.
• Via .gov.uk ‘One Login’ service, see https://www.gov.uk/using-your-gov-uk-one-login
• Use an Authorised Corporate Service Provider such as your accountant or auditor to verify you.

Compulsory/Mandatory Verification

• From Autumn 2025, it will be compulsory for more than 6 million individuals associated with limited companies to verify their ID within 12 months by the same means above.
• Confirmation Statement – each year, a limited company must already file a return with Companies House details of the registered office address, directors, secretaries, registered shareholder details, statement of capital, and SIC codes (Standard Industrial Classification) and it is proposed that ID verification will also soon form part of the Confirmation Statement.

Comment

ID verification should provide some security in that ‘beneficial owners’ and anonymous ‘directors’ will be flushed out and offer us all security in knowing that the individuals owning and running a business have been through some security checks.  It’s about time.